Net profit landslide? Jufei power automotive LEDs and Mini LEDs

A few days ago, Jufei Optoelectronics released its 2021 annual report. According to the report, in 2021, Jufei Optoelectronics achieved revenue of 2.371 billion yuan, an increase of 0.86% year-on-year; net profit attributable to shareholders of listed companies was 272 million yuan, down 10.91% year-on-year.

For the decline in the company's net profit, Jufei Optoelectronics said that in 2021, under the situation of normalization of the new crown epidemic, the global political and economic environment is unstable, and the consumer electronics market has been greatly affected, resulting in a decline in gross profit margin.

Jufei Optoelectronics specializes in the research and development, production and sales of SMD LED products, and its main business belongs to LED packaging. In 2021, the company will mainly deepen the LED industry, relying on backlight LEDs and lighting LEDs, expanding LED businesses such as automotive LEDs, Mini/Micro LEDs, invisible lighting, and high-end lighting, and expanding to semiconductor packaging (discrete device packaging) and membrane industry.

01

The backlit LED business is growing steadily

Although the epidemic has affected the terminal market of the consumer electronics market to a certain extent, it has also derived the "home economy", and the burst of business opportunities in the markets such as remote office, online education, and home office has stimulated the strong demand for smart terminals such as tablet computers, notebook computers, and smart wearable devices.

As a leading enterprise in the production of backlit LEDs in Chinese mainland, Jufei Optoelectronics' backlit LED business will develop steadily in 2021. Although the sales of backlit LED products have declined slightly compared with the same period last year, the company has made every effort to develop key foreign customers in recent years, and the proportion of international sales that has broken through the international top customer market has been further improved.

According to the annual report data, Jufei Optoelectronics achieved sales revenue of 1.679 billion yuan in 2021, down 6.15% year-on-year, accounting for 70.82% of operating income, and the comprehensive yield of products reached 99.3%.

02

The lighting LED business is on par with high-end products

Affected by the decline in the global economic boom, the growth rate of the global LED lighting market has slowed down significantly. Due to the relatively low entry threshold of the lighting market, the competition in the lighting LED packaging business is more serious.

In order to avoid the Red Sea market, in 2021, Jufei Optoelectronics focused on differentiated lighting LEDs, continued to launch a series of high-end products, and achieved a steady increase in sales revenue.

According to the annual report data, the company's lighting LED products achieved sales revenue of 283 million yuan year-on-year increased by 18.36%, accounting for 11.95% of operating income, and the comprehensive yield of products reached 99.25%.

03

Mini/MicroLED is going well

With the continuous maturity of Mini LED technology, the cost has decreased year by year, attracting many companies to enter the Mini LED market and launch consumer electronic products such as laptops, monitors, and TVs equipped with Mini LED technology.

Thanks to the resource advantages and full preparation of Jufei Optoelectronics, the company continues to enrich LED-related products and expand new business horizontally. With the advantages of high color gamut, high brightness, high contrast and stable quality and performance, Jufei Optoelectronics' Mini LED products have widely entered the fields of laptop, TV, VR and other fields, and have been praised by many key customers.

Jufei Optoelectronics said that the rapid growth of Mini LED products will gradually become the driving force for the company's performance growth.

At the same time, the technology research and development reserves of Jufei Optoelectronic Micro LED and the cooperation and development with key manufacturers are progressing smoothly.

It is understood that in April this year, the MicroLED ultra-high-definition display device created by Jufei Optoelectronics for a government agency was officially put into use.

04

The automotive LED business maintained strong growth

Thanks to the increasingly obvious trend of automobile intelligence and electrification, the overall consumption of automotive LEDs continues to rise sharply, and the comprehensive layout of Jufei Optoelectronics for automotive products, Jufei Optoelectronics' automotive LED business will continue to maintain strong development in 2021, and the proportion of sales will increase steadily.

It is understood that Jufei Optoelectronics' automotive backlight products have fully entered the supply chain system of global customers and are currently the only mainland brand; the series of high-power lighting products for vehicles launched by the company have been widely used in near and far lights, daily running lights.

Jufei Optoelectronics said that the company's vehicle-grade Mini LED backlight source has obtained a number of independent brand car projects, and the business is progressing smoothly; the vehicle-grade Mini LED direct display module is widely used in new energy vehicles, and some projects have achieved mass production.

05

Expand new business, invisible light is expected to become a new growth point

With the growth of consumer demand for safety monitoring, 3D sensing and monitoring and tracking in smart induction terminals such as smart homes, smart wearables, consumer electronics, and new energy vehicles, Jufei Optoelectronics' invisible light business has progressed smoothly, of which IR and VCSEL products have achieved smooth supply.

Jufei Optoelectronics said: "It is expected that the future development prospects of invisible light products can be expected, and it is expected to become a new profit growth point for the company. ”

In addition, Jufei Optoelectronics' optical film business is progressing smoothly, in order to enhance the overall delivery capacity, the newly expanded production line has been put into use, the supply of medium and high-end products has been smooth, and the overall profitability has improved significantly.

The optical device team in the high-end semiconductor packaging business has expanded the manufacturing and production of a variety of devices while consolidating the original product line, and laid out the optical module product lines such as 100G/25G/10G, which have been recognized by domestic large customers and smoothly entered mass production.

Looking forward to the future, Jufei Optoelectronics will adhere to the "quality is the bridge connecting customers", "do fine, stronger, bigger" business ideas, through the combination of endogenous and epitaxial, focus on creating LED, semiconductor packaging, optical film three major business sectors, and gradually develop into a respected world-class excellent enterprise.

On the same day as the annual report was disclosed, Jufei Optoelectronics also released its 2022 Q1 report. In the first quarter of 2022, Jufei Optoelectronics achieved revenue of 508 million yuan, down 7.82% year-on-year; net profit attributable to the mother was 52.39 million yuan, down 6.29% year-on-year.